Bitcoin saw heightened volatility during Asian trading hours on Monday, dropping more than 5% to $64,270 shortly after midnight UTC before rebounding to around $66,300 by 11:00 UTC. Thin liquidity appeared to magnify the move as markets reacted to renewed U.S. tariff proposals and escalating geopolitical tensions.

The swings echoed movements in traditional markets. Futures tied to the S&P 500 fell 0.84% after opening Sunday evening, then began recovering several hours later. Gold futures moved in the opposite direction, climbing to their highest level since Jan. 30 at the open before trimming gains during European hours. Silver tracked gold’s trajectory.

The divergence between risk assets and precious metals followed remarks from U.S. President Donald Trump outlining plans for new 15% global tariffs on trading partners, alongside reports of increased U.S. military activity near Iran. The developments prompted a shift toward safe-haven assets.

Altcoins were hit harder amid the low-liquidity backdrop. Solana (SOL) and SUI fell between 7% and 8% overnight before recovering during European trading. The turbulence contributed to roughly $270 million in altcoin liquidations, according to CoinGlass.

Derivatives markets show defensive positioning

Leverage demand remains muted, with total crypto futures open interest staying below $100 billion for more than two weeks. Over the past 24 hours, exchanges liquidated approximately $500 million in crypto futures positions due to margin shortfalls.

Traders appear to be rotating toward tokens linked to traditional assets. Open interest in Tether Gold (XAUT) futures rose 14% in 24 hours, even as bitcoin, ether, solana, HYPE and dogecoin experienced outflows.

ZEC and CRO were the only tokens posting a positive 24-hour cumulative volume delta (CVD), indicating buyer dominance. By contrast, bitcoin and other major assets showed negative CVD readings, reflecting stronger selling pressure.

Bitcoin’s 30-day implied volatility index (BVIV) climbed 9% to above 60%, signaling renewed uncertainty. On Deribit, bitcoin and ether put options traded at a premium to calls across maturities, highlighting continued downside hedging. Traders focused on protective puts at $58,000, $60,000 and $62,000 strike levels following the tariff announcement.

Altcoins remain under pressure

The broader altcoin market continued to struggle after what appeared to be an outsized selloff driven by bitcoin’s weakness and declines in U.S. equities.

Low liquidity intensified declines in smaller tokens. Pump.fun’s PUMP token fell 8.5% before bouncing back, while LayerZero’s ZRO dropped 16.5% over 24 hours before stabilizing around 04:00 UTC. A few assets outperformed, including restaking protocol ETHFI, which gained more than 10% from Monday’s low.

Telegram-linked toncoin (TON) displayed relative resilience, slipping 3.6% overnight before rebounding nearly 5%.

Among broader measures, the CoinDesk DeFi Select Index (DFX) outperformed other benchmarks, falling 1.84% over 24 hours. The CoinDesk Smart Contract Platform Select Index and CoinDesk Computing Select Index declined 3.56% and 3.23%, respectively.

Altcoins have largely tracked bitcoin’s direction throughout February, but thin order books have exaggerated price swings. If bitcoin can establish a local bottom and reclaim the $70,000 level, several altcoins may be positioned for a stronger recovery after liquidity was flushed earlier in the month.